OK, so everyone is wrong on occasion and I'm no exception. We are now seeing rates below 5%. While a 4.5% 30 year fixed rate has yet to materialize, I have locked clients at 4.5% 15 year and 4.75% 20 year mortgages. If you are on my client list, you will be receiving a notice next week regarding our Financial Stimulus Package (FSP) Refinance. For those who are eligilble this is truly an unprecedented opportunity to cut your interest expense by THOUSANDS - litterally!
My average client will save over $50,000 with this program WITHOUT increasing the current monthly payment.
Next week we will also receive the details behind the new Administration's Home Owner Stability & Affordability Plan. This is of particular interest to many of you because it contains provisions over refinancing your existing loan when your home doesn't appraise.
I will be sure to post the details as soon as I have the information in hand.
In the meantime, I am receiving a lot of questions regarding whether you should refinance now or wait for rates to drop further. To answer that question I am publishing a short video to describe the events that are currently taking place and why I recommend taking advantage of the current low rates as soon as possible.
Wednesday, February 25, 2009
Thursday, December 4, 2008
4.5% Rates From The Feds?? I'll Believe It When I See It!
This morning we have seen a lot of news regarding a push by lobbyists to get the Feds to buy enough mortgage backed securities in the open market to drive rates down to 4.5%.
I say BULL!! I'll believe it when I see it. If their idea of helping the real estate industry is anything like the FHA Secure Programs or the Fannie Mae Hope Loans - its great for political rhetoric, but NO ONE CAN USE THEM!! Out of my 1200 clients - NOT ONE PERSON could use those "historically helpful programs" - so I say BULL!!
I do hope that rates fall to 4.5%, but if they do it should be under normal free market economic conditions, where demand matches supply, where real rates of returns for investors are not clouded with inflationary uncertainty and there are no short term fixes from the government that look great on paper but provide no value to the end user - US - THE TAXPAYERS!!
Here is the BOTTOM LINE: If rates go to 4.5%, without additonal Points, you will be the first to know via my Mortgage Hot Line and Rate Watch Monitor.
More to come...... Jon
I say BULL!! I'll believe it when I see it. If their idea of helping the real estate industry is anything like the FHA Secure Programs or the Fannie Mae Hope Loans - its great for political rhetoric, but NO ONE CAN USE THEM!! Out of my 1200 clients - NOT ONE PERSON could use those "historically helpful programs" - so I say BULL!!
I do hope that rates fall to 4.5%, but if they do it should be under normal free market economic conditions, where demand matches supply, where real rates of returns for investors are not clouded with inflationary uncertainty and there are no short term fixes from the government that look great on paper but provide no value to the end user - US - THE TAXPAYERS!!
Here is the BOTTOM LINE: If rates go to 4.5%, without additonal Points, you will be the first to know via my Mortgage Hot Line and Rate Watch Monitor.
More to come...... Jon
Wednesday, May 21, 2008
We're Not Talking Peanuts Folks!!
Its a beautiful Spring day out there! Hope that the weather stays nice like this for my son's graduation party.
Rates haven't done much since last post - mostly fluctuating betweent that 6 - 6.5% mark.
Next week many of you will be getting my periodic newsletter and this month is a real 'humdinger'. I have a promotion that I will reval. It will be, by far, the Biggest, Baddest, Giveaway that I've ever announced, so you will definately want to stay tuned. As you will see in my newsletter - "we're not talking about peanuts folks!"
OH, by the way - I'm also meeting with one of the Michigan State Housing Development Authority (MSHDA) Representatives next week to do a one on one review of the recent Home Loan Rescue Program, so if you know of someone that could use help on their mortgage I will have more resources to help them. I'll keep you posted. - Jon
Rates haven't done much since last post - mostly fluctuating betweent that 6 - 6.5% mark.
Next week many of you will be getting my periodic newsletter and this month is a real 'humdinger'. I have a promotion that I will reval. It will be, by far, the Biggest, Baddest, Giveaway that I've ever announced, so you will definately want to stay tuned. As you will see in my newsletter - "we're not talking about peanuts folks!"
OH, by the way - I'm also meeting with one of the Michigan State Housing Development Authority (MSHDA) Representatives next week to do a one on one review of the recent Home Loan Rescue Program, so if you know of someone that could use help on their mortgage I will have more resources to help them. I'll keep you posted. - Jon
Thursday, May 1, 2008
Vanished!!
I can't believe that my last entry was March 6th!! Sorry - I bet that you thought that I had vanished...nope....still here trying to read thru and sort out all of the changes that are occurring!
I just wanted to give you a quick update on the rates - in general over the last month the rates have been oscilating between 6 - 6.50%. NOW, please let me disclose that this is the BASE rate - one of the biggest changes to take place in the mortgage industry is the addition of what are called "delivery fees" - what this means is that there is an adjustment made on the rate or fee structure of your mortgage for EVERYTHING from credit scores, to the type of loan, to your loan to value.
Certainly isn't making anything easier in the lending world.
The recent Fed rate cut didn't do much for mortgage rates, other than try to provide more liquidity to the credit markets - in other words, keep things from getting worse.
I will continue to keep you posted and for those of you on the Rate Watch Monitor, I will most certainly make you aware of advantageous drops in the rate when or if they occur.
I just wanted to give you a quick update on the rates - in general over the last month the rates have been oscilating between 6 - 6.50%. NOW, please let me disclose that this is the BASE rate - one of the biggest changes to take place in the mortgage industry is the addition of what are called "delivery fees" - what this means is that there is an adjustment made on the rate or fee structure of your mortgage for EVERYTHING from credit scores, to the type of loan, to your loan to value.
Certainly isn't making anything easier in the lending world.
The recent Fed rate cut didn't do much for mortgage rates, other than try to provide more liquidity to the credit markets - in other words, keep things from getting worse.
I will continue to keep you posted and for those of you on the Rate Watch Monitor, I will most certainly make you aware of advantageous drops in the rate when or if they occur.
Thursday, March 6, 2008
Watch Your 'Back-ing'
Wow! - Seriously the swings that we are seeing are the worst I have ever seen.
From last Friday, we are up over 1/2% on the 30 year fixed rate - approaching another high that hasn't been seen in the last 3 years.
The news out today is that there are rumors floating around that Mortgage Backed Securities may lose their AAA rating. Remember that the Federal Government provides Fannie Mae and Freddie Mac with full backing in order to reduce the risk to investors. But investors are requiring the highest premiums on Mortgage Backed Securities since 1983. This is why you see the Treasury markets (1-10 year Treasury notes) continuing to go up in price and down in rate, but Mortgages continue to get hammered on price - driving the rates up. OUCH!!!!
From last Friday, we are up over 1/2% on the 30 year fixed rate - approaching another high that hasn't been seen in the last 3 years.
The news out today is that there are rumors floating around that Mortgage Backed Securities may lose their AAA rating. Remember that the Federal Government provides Fannie Mae and Freddie Mac with full backing in order to reduce the risk to investors. But investors are requiring the highest premiums on Mortgage Backed Securities since 1983. This is why you see the Treasury markets (1-10 year Treasury notes) continuing to go up in price and down in rate, but Mortgages continue to get hammered on price - driving the rates up. OUCH!!!!
Thursday, February 28, 2008
I Told You So!
Wish that I would have bet some money on that prediction! We have seen rates come down .25% since last week when I posted my last BLOG. The GDP figures released today were flat and unemployment numbers were higher than expected, giving more strength to the bond market - remember - bad news usually will provide strength in the bond market and lower rates.
A lot of info being released tomorrow, so we could see another very volatile day - hopefully a big reduction. For those of you still floating - all we need is a small window to get those rates locked.
By the way - here is a link to the article this morning:
http://www.msnbc.msn.com/id/23387861/
A lot of info being released tomorrow, so we could see another very volatile day - hopefully a big reduction. For those of you still floating - all we need is a small window to get those rates locked.
By the way - here is a link to the article this morning:
http://www.msnbc.msn.com/id/23387861/
Friday, February 22, 2008
Not Since The Great Depression...
That is what I woke up to this morning!! The headline on the radio says, "Not since the Great Depression have so many homeowners had negative equity in their homes."
That's just great - thank you NPR for making us so very aware of that kind of garbage and using sensationalism in your reporting to exacerbate more doom and gloom.
That kind of stuff just frys me!!!
Anyways, as I have always done, I will try to bring you FACTUAL information so that you can make informed decisions without the garbage used by the media to increase circulation or ratings.
Rates have gone up to the mid 6 range after almost 5 weeks at or under 6. The sudden run up this week was caused due to further speculation that inflation is present in our economy and that a loose monetary policy by the feds will fuel even more future inflation.
As of yesterday, we did see some relief and I would expect to see rates stay at the low end of the 6 range next week.
That's just great - thank you NPR for making us so very aware of that kind of garbage and using sensationalism in your reporting to exacerbate more doom and gloom.
That kind of stuff just frys me!!!
Anyways, as I have always done, I will try to bring you FACTUAL information so that you can make informed decisions without the garbage used by the media to increase circulation or ratings.
Rates have gone up to the mid 6 range after almost 5 weeks at or under 6. The sudden run up this week was caused due to further speculation that inflation is present in our economy and that a loose monetary policy by the feds will fuel even more future inflation.
As of yesterday, we did see some relief and I would expect to see rates stay at the low end of the 6 range next week.
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